THE COINAGE ACT, 2011 
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ARRANGEMENT OF SECTIONS 
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CHAPTER I 

PRELIMINARY 

SECTIONS 

1.  Short title, extent and commencement. 
2.  Definitions. 

CHAPTER II 

ESTABLISHMENT OF MINTS 

3.  Power to establish and abolish Mints. 

CHAPTER III 

COINAGE 

4.  Denominations, dimensions, designs and composition of coins. 
5.  Standard weight and remedy. 
6.  Coin when a legal tender. 
7.  Decimal system of coinage. 
8.  Power to call in coin. 

CHAPTER IV 

DIMINISHED, DEFACED AND COUNTERFEIT COINS 

9.  Power to certain persons to cut, diminished or defaced coins. 
10.  Power to certain persons to cut counterfeit coins. 
11.  Power of Mint to delegate its functions. 

CHAPTER V 

OFFENCES AND PENALTIES 

12.  Prohibition of making or melting or destruction of coins. 
13.  Penalty for contravention of section 12. 
14.  Prohibition and penalty for unlawful making, issue or possession of pieces of metal to be used as 

money. 

15.  Prohibition and penalty for bringing metal piece for use as coin. 
16.  Offences by companies. 

CHAPTER VI 

MISCELLANEOUS 

17.  Forfeiture. 
18.  Probation of Offenders Act, 1958 not to apply to offences under this Act. 
19.  Offences to be cognizable, bailable and non-compoundable. 
20.  Amendment of Act 2 of 1934. 
21.  Offences may be tried summarily. 

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SECTIONS 

22.  Protection of action taken in good faith. 
23.  Power to remove difficulties. 
24.  Power to make rules. 
25.  Rules to be laid before Parliament. 
26.  Saving of making other coins at Mints. 
27.  Repeal and savings. 
28.  Continuance of existing coins. 

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THE COINAGE ACT, 2011 

ACT NO. 11 OF 2011 

An Act to consolidate the laws relating to coinage and the Mints, the protection of coinage and to 
provide for the prohibition of melting or destruction of coins and prohibit the making or the 
possession thereof for issue and for matters connected therewith or incidental thereto. 

BE it enacted by Parliament in the Sixty-second Year of the Republic of India as follows:— 

[1st September, 2011.] 

CHAPTER I 

PRELIMINARY 

1. Short title, extent and commencement.—(1) This Act may be called the Coinage Act, 2011. 

(2) It extends to the whole of India. 
(3)  It  shall  come  into  force  on  such  date1  as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint. 

2. Definitions.— In this Act, unless the context otherwise requires,— 

(a)  “coin”  means  any  coin  which  is  made  of  any  metal  or  any  other  material  stamped  by  the 
Government or any other authority empowered by the Government in this behalf and which is a legal 
tender including commemorative coin and Government of India one rupee note. 

Explanation.—For the removal of doubts, it is hereby clarified that a “coin” does not include the 
credit  card,  debit  card,  postal  order  and  e-money  issued  by  any  bank,  post  office  or  financial 
institution; 

(b)  “commemorative  coin”  means  any  coin  stamped  by  the  Government  or  any  other  authority 
empowered  by  the  Government  in  this  behalf  to  commemorate  any  specific  occasion  or  event  and 
expressed in Indian currency; 

(c) “deface” means any type of clipping, filing, stamping, or such other alteration of the surface 

or shape of a coin as is readily distinguishable from the effects or reasonable wear; 

(d) “Government” means the Central Government; 

(e) “issue” means to put a coin into circulation for use as money; 

(f) “metal” means any metal, base metal, alloy, gold, silver or any other material which may be 

prescribed by the Government for the purpose of any coin; 

(g)  “Mint”  means  the  Security  Printing  and  Minting  Corporation  of  India  Limited  formed  and 
incorporated under the Companies Act, 1956 (1 of 1956)  or any other organisation established by or 
under the authority of the Government to make a coin by stamping metal; 

(h) “notification” means notification published in the Official Gazette; 

(i) “per cent.” means the percentage of metals prescribed for any coin; 

(j) “prescribed” means prescribed by rules made under this Act; 

(k) “remedy” means variation from the standard weight and fineness; 

(l) “standard weight” means the weight prescribed for any coin. 

1. 28th March, 2012, vide notification No. S.O. 628(E), dated 28th March, 2012, see Gazette of India, Extraordinary, 

Part II, sec.. 3 (ii). 

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CHAPTER II 

ESTABLISHMENT OF MINTS 

3. Power to establish and abolish Mints.—The Government may, by notification,— 

 (a) establish a Mint at any place which may be managed by it or by any other person, which may 

be authorised for this purpose: 

Provided  that  the  Mints  established  before  the  commencement  of  this  Act  shall  be  deemed  to 

have been established by the Government under this section: 

Provided further that where the Government is of the opinion that it is necessary or expedient in 
the public interest so to do, it may authorise the minting of coins by any organisation or Government 
of any foreign country, within or beyond the limits of India and acquire such coins either by way of 
import or otherwise for issue under its authority; 

(b) abolish any Mint. 

CHAPTER III 

COINAGE 

4.  Denominations,  dimensions,  designs  and  composition  of  coins.—Coins  may  be  minted  at  the 
Mints or  at any other place authorised under the proviso to section 3 of such denominations not higher 
than  one  thousand  rupees  and  of  such  dimensions  and  designs  and  containing  such  metals  or  mixed 
metals of such composition or any other material as may be prescribed by the Government. 

5.  Standard  weight  and  remedy.—The  standard  weight  of  the  coin  of  any  denomination,  minted 
under the provisions of section 4, and the remedy allowed in making of such coins, shall be such as may 
be prescribed in this behalf by the Government from time to time.  

6. Coin when a legal tender.—(1) The coins issued under the authority of section 4 shall be a legal 

tender in payment or on account, in case of— 

 (a)  a  coin  of  any  denomination  not  lower  than  one  rupee,  for  any  sum  not  exceeding  one 

thousand rupees; 

(b) a half-rupee coin, for any sum not exceeding ten rupees; 

(c) any other coin, for any sum not exceeding one rupee: 

Provided that the coin has not been defaced and has not lost weight so as to be less than such weight 

as may be prescribed in its case. 

(2)  All  new  coins  in  the  naya  paisa  series,  designated  as  such  under  the  notification  of  the 
Government of India in the Ministry of Finance, Department of Economic Affairs, Number S.R.O. 1120, 
dated the 11th May, 1956 issued prior to the commencement of the Indian Coinage (Amendment) Act, 
1964 (17 of 1964), shall continue to be a legal tender in payment or on account, in case of,—  

(a) a half-rupee or fifty naye paise coin, for any sum not exceeding ten rupees; 

(b) any other coin, for any sum not exceeding one rupee. 

7. Decimal system of coinage.—(1) The rupee shall be divided into one hundred units and any such 

unit may be designated by the Government, by notification, under such name as it thinks fit. 

(2) All references in any enactment or in any notification, rule or order under any enactment or in any 
contract, deed or other instrument to any value expressed in annas, paisa and pies shall be construed as 
references to that value expressed in units referred to in sub-section (1) converted thereto at the rate of 
sixteen anna, sixty-four paise or one hundred and ninety-two pies to one hundred units referred to in sub-
section (1). 

(3) All references in any enactment or in any notification, rule or order under any enactment or in any 
contract,  deed  or  other  instrument  to  any  value  in  naya  paisa  or  naye  paise  shall  be  construed  as 
references to that value expressed respectively in units referred to in sub-section (1). 

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8. Power to call in coin.—Notwithstanding anything contained in section 6, the Government may, by 
notification,  call  in  with  effect  from  such  date  as  may  be  specified  in  the  notification,  any  coin,  of 
whatever date or denomination and on and from the date so specified, such coin shall cease to be a legal 
tender, save to such extent as may be specified in the notification.  

CHAPTER IV 

DIMINISHED, DEFACED AND COUNTERFEIT COINS 

9. Power to certain persons to cut, diminished or defaced coins.—(1) Where any coin which has 
been minted and issued by or under the authority of the Government is tendered to any person authorised 
by it to act under this section, and such person has reason to believe that the coin— 

 (a) has been diminished in weight so as to be more than such per cent. below standard weight as 

provided in section 5; or 

(b) has been defaced, 

he shall, by himself or through another person, cut or break the coin. 

(2)  A  person  cutting  or  breaking  coin  under  the  provisions  of  clause  (a)  of  sub-section  (1)  shall 

receive and pay for the coin at its face value. 

(3)  A  person  cutting  or  breaking  coin  under  the  provisions  of  clause  (b)  of  sub-section  (1)  shall 

observe the following procedure, namely:— 

(a)  if  such  person  has  reason  to  believe,  that  the  coin  has  been  fraudulently  defaced,  he  shall 
return the pieces to the person tendering the coin, who shall bear the loss caused by such cutting or 
breaking; 

(b) if such person has reason to believe, that the coin has not been fraudulently defaced, he shall 

receive and pay for the coin at its face value. 

10.  Power  to  certain  persons  to  cut  counterfeit  coins.—Where  any  coin  minted  or  issued  by  or 
under  the  authority  of  the  Government  is  tendered  to  any  person  authorised  by  the  Government  under 
section 9 and such person has reason to believe that the coin is counterfeit, he shall by himself or through 
another  person  cut  or  break  the  coin,  and  the  tenderer  shall  bear  the  loss  caused  by  such  cutting  or 
breaking. 

11.  Power  of  Mint  to  delegate  its  functions.—The  Mint  may  in  writing  authorise  any  other 
organisation of the Government to melt withdrawn coins or take any help of such organisation for the said 
purpose. 

Explanation.—For the purposes of this section “organisation” means any Government industrial unit 

or public sector undertaking possessing melting facilities. 

CHAPTER V 

OFFENCES AND PENALTIES 

12. Prohibition of making or melting or destruction of coins.—(1) No person shall— 

(i)  use  any  metal  piece  as  coin  whether  stamped  or  unstamped,  intended  to  be  used  as  money 

except by the authority of the Government, or 

(ii) melt or destroy any coin, or 

(iii) use coin other than as a medium of exchange, or 

(iv) have in his possession, custody or control,— 

(a) any melted coin, whether in the molten state or in a solid state, or 

(b) any coin in a destroyed or mutilated state, or 

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(c) coins substantially in excess of his reasonable requirements for the purpose of selling such 
coins for value other than their face value or for melting or for destroying or for disposing these 
coins other than as a medium of exchange. 

Explanation.—For  the  purposes  of  determining  the  reasonable  requirements  of  coins  of  a 

person, due regard shall be had to— 

(i) his total daily requirements of coins; 

(ii) the nature of his business, occupation or profession; 

(iii) the mode of his acquisition of coins; and 

(iv) the manner in which, and the place at which, such coins are being possessed, held or 

controlled by him. 

(2) Whoever is found to be in possession of any metal or material which contains alloys in the same 
proportions  in  which  they  have  been  used  in  the  manufacture  of  any  coin  shall  be  presumed,  until  the 
contrary is proved, to have contravened the provisions of sub-section (1). 

(3) Nothing in this section shall apply— 

 (i)  to  any  person  who  is  found  in  possession  of  any  metal  or  scraps  or  scissel,  etc.,  of  non-
recyclable coinage metal, which he may so possess as a result of valid disposal by auctions by a Mint; 

(ii) to the Mint, Reserve Bank of India and its authorised agents, and suppliers of coins or coin 
blanks to the extent of orders placed by or under the authority of the Government until their supply or 
completion of orders placed by the Government; 

(iii) to any prospective supplier who intends to supply coin or coin blanks as samples against a 
valid  tender  documents  purchased  by  him  provided  that  quantity  is  in  reasonable  agreement  with 
quantity of samples to be supplied. 

13.  Penalty  for  contravention  of  section  12.—Whoever  contravenes  any  provisions  of  section  12 

shall be punishable with imprisonment which may extend to seven years and with fine. 

14.  Prohibition  and  penalty  for  unlawful  making,  issue  or  possession  of  pieces  of  metal  to  be 

used as money.—(1) No person shall— 

(a) make or issue or attempt to issue any metal piece except as provided under section 4 for the 

purpose of coin; 

(b)  possess,  custody  or  control  of  any  metal  piece  with  the  intent  to  issue  the  piece  for  use  as 

money for a medium of exchange. 

(2)  Whoever  contravenes  the  provisions  of  sub-section  (1)  shall  be  punishable  with  imprisonment 

which may extend to one year or with fine or with both: 

Provided  that  if  any  person  convicted  under  this  section  is  again  convicted,  he  shall  be  punishable 

with imprisonment which may extend to three years or with fine or with both. 

15. Prohibition and penalty for bringing metal piece for use as coin.—(1) No person shall bring 
by sea or by land or by air into India of any piece of metal to be used as coin except with the authority or 
permission of the Government. 

(2)  Whoever  contravenes  the  provisions  of  sub-section  (1)  shall  be  punishable  with  imprisonment 

which may extend to seven years and with fine. 

16.  Offences  by  companies.—(1)  Where  an  offence  under  this  Act  has  been  committed  by  a 
company, every person who at the time the offence was committed was in charge of, and was responsible 
to, the company for the conduct of its business, shall be deemed to be guilty of the offence and shall be 
liable to be proceeded against and punished accordingly: 

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Provided that nothing contained in this sub-section shall render any person liable to any punishment, 
if he proves that the offence was committed without his knowledge or that he exercised all due diligence 
to prevent the commission of such offence. 

(2)  Notwithstanding,  anything  contained  in  sub-section  (1),  where  any  offence  under  this  Act  has 
been committed by a company and it is proved that the offence has been committed with the consent or 
connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other 
officer, such director, manager, secretary or other officer of the company shall be deemed to be guilty of 
that offence and shall be liable to be proceeded against and punished accordingly. 

Explanation.—For the purposes of this section,— 

(a)  “company”  means  any  body  corporate  and  includes  a  firm,  society  or  other  association  of 

individuals; and 

(b) “director”, in relation to— 

(i) a firm, means a partner or proprietor of the firm; 

(ii) a society or other association of individuals, means the person who is entrusted, under the 
rules of the society or other association, with the management of the affairs of the society or other 
association of the individuals, as the case may be. 

CHAPTER VI 

MISCELLANEOUS 

17.  Forfeiture.—Any  coin  or  metal  in  relation  to  which  any  offence  under  this  Act  has  been 

committed shall be forfeited to the Government. 

18.  Probation  of  Offenders  Act,  1958  not  to  apply  to  offences  under  this  Act.—Nothing  in  the 

Probation of Offenders Act, 1958 (20 of 1958) shall apply to offences under this Act. 

19.  Offences  to  be  cognizable,  bailable  and  non-compoundable.—Notwithstanding  anything 
contained  in  the  Code  of  Criminal  Procedure,  1973  (2  of  1974),  offences  under  this  Act  shall  be 
cognizable and bailable, but shall not be compoundable. 

20. Amendment of Act 2 of 1934.—In the Reserve Bank of India Act, 1934,— 

 (i) in section 2, in clause (d), for the words and figures the Indian Coinage Act, 1906 (3 of 1906), 

the words and figures the Coinage Act, 2011shall be substituted; 

(ii) in section 39, for the words and figures "the Indian Coinage Act, 1906 (3 of 1906)", at both 

the places where they occur, the words and figures "the Coinage Act, 2011" shall be substituted. 

21. Offences may be tried summarily.—Notwithstanding anything contained in section 260 of the 
Code  of  Criminal  Procedure,  1973  (2  of  1974),  offences  under  this  Act  may  be  tried  summarily  by  a 
Judicial Magistrate of the first class or a Metropolitan Magistrate. 

22. Protection of action taken in good faith.—No suit or other legal proceedings shall lie against 
any  person  in  respect  of  anything  which  is  in  good  faith  done,  or  intended  to  be  done,  under  or  in 
pursuance of the provisions of this Act. 

23. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of 
this  Act,  the  Government  may,  by  order  published  in  the  Official  Gazette,  make  such  provisions,  not 
inconsistent with the provisions of this Act as may appear it to be necessary or expedient for removing the 
difficulty: 

Provided that no such order shall be made under this section after the expiry of five years from the 

commencement of this Act. 

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each 

House of Parliament. 

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24.  Power  to make rules.—(1) The  Government  may,  by  notification,  make  rules to  carry  out  the 

purposes of this Act. 

(2)  In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:— 

(a) the use of metal for the purpose of making any coin under clause (f) of section 2; 

(b) the per cent. of metals for any coin under clause (i) of section 2; 

(c) the standard weight for any coin under clause (l) of section 2; 

(d) the dimensions, designs, metals, mixed metals or their composition, for coins under section 4; 

(e) the standard weight of coins and the remedy allowed in making such coins under section 5. 

25. Rules to be laid before Parliament.—Every rule made under this Act shall be laid, as soon as 
may be after it is made, before each House of Parliament, while it is in session for a total period of thirty 
days  which  may  be  comprised in  one session or  in  two  or  more  successive  sessions,  and if,  before  the 
expiry of the session immediately following the session or the successive sessions aforesaid, both Houses 
agree in making any modification in the rule or both Houses agree that the rule should not be made, the 
rule  shall  thereafter  have  effect  only  in  such  modified  form  or  be  of  no  effect, as  the  case  may  be;  so, 
however, that any such modification or annulment shall be without prejudice to the validity of anything 
previously done under that rule. 

26.  Saving  of  making  other  coins  at  Mints.—Nothing  in  this  Act  shall  be  deemed  to  prohibit  or 
restrict the making at any Mint in India of coins intended for issue as money by the foreign Government 
of any territories beyond the limits of India. 

27. Repeal and savings.—(1) The following enactments are hereby repealed— 

(a) the Metal Tokens Act, 1889 (1 of 1889); 

(b) the Coinage Act, 1906 (3 of 1906); 

(c) the Bronze Coin (Legal Tender) Act, 1918 (22 of 1918); 

(d) the Currency Ordinance, 1940 (Ord. IV of 1940); 

(e) the Small Coins (Offences) Act, 1971 (52 of 1971). 

(2) The repeal by this Act of the enactments and Ordinance specified in sub-section (1) shall not— 

(a) affect any other enactment in which the repealed enactment or Ordinance has been applied, 

incorporated or referred to; 

(b) affect the validity, invalidity, effect or consequences of anything already done or suffered, or 
any  right,  title,  obligation  or  liability  already  acquired,  accrued  or  incurred  or  any  remedy  or 
proceeding  in  respect  thereof,  or  any  release  or  discharge  of  or  from  any  debt,  penalty,  obligation, 
liability, claim or demand, or any indemnity already granted, or the proof of any past act or thing; 

(c)  affect  any  principle  or  rule  of  law,  or  established  jurisdiction,  form  or  course  of  pleading, 
practice  or  procedure,  or  existing  usage,  custom,  privilege,  restriction,  exemption,  office  or 
appointment,  notwithstanding  that  the same  respectively  may  have  been  in  any manner  affirmed  or 
recognised or derived by, in or from any enactment or Ordinance hereby repealed; 

(d)  revive  or  restore  any  jurisdiction,  office,  custom,  liability,  right,  title,  privilege,  restriction, 

exemption, usage, practice, procedure or other matter or thing not now existing or in force. 

(3) The  mention  of  particular  matters in  sub-section (1)  shall  not  be  held to  prejudice  or  affect  the 
general application of section 6 of the General Clauses Act, 1897 (10 of 1897), with regard to the effect of 
repeals. 

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28.  Continuance  of  existing  coins.—Notwithstanding  the  repeal  of  the  enactments  and  the 

Ordinance specified in sub-section (1) of section 27,— 

(a) all coins issued under the said enactments; and 

(b) Government of India one rupee note issued under the Currency Ordinance, 1940 (Ord. IV of 

1940), 

which are legal tender immediately before the commencement of the Coinage Act, 2011 shall be deemed 
to  be  the  coin  and  continue  to  be  legal  tender  in  payment  or  on  account  under  the  corresponding 
provisions of this Act. 

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